WEEKLY REVIEW OF BITUMEN MARKET IN THE WORLD Date: Sep 24 2023
- Category: News
- Published: Monday, 16 October 2023 12:25
- Written by Super User
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During the past week at the Iran Mercantile Exchange (IME), there was a notable surge in the supply of vacuum bottoms (VB), totaling 190,000 metric tons. This represented a robust 7.56% increase compared to the preceding week. The prior week also witnessed an uptick in supply, rising by 2,000 metric tons. Im- portantly, the entire supply was successfully traded, and throughout the week, VB prices experienced amodest fluctuation rate ranging from -1.2% to 1.3%. The increased supply was primarily attributed to heightened production from refineries in Tabriz and Isfahan. Furthermore, during this period, Tehran and Bandar Abbas VBs exhibited the most substantial price increases, registering a rise of 1.3%. The ratio between VB’s closing price and IME’s export bi- tumen reached 86%. VB’s average valuation in the Free Market, denominated in USD, was appraised at $277. Additionally, the value of VB in the Cen- ter of Exchange Dollar achieved a level of $331.
Supplies within the Export Market of the Iran Mer- cantile Exchange (IME) reached approximately 134,000 metric tons, indicating a substantial sur- plus of 67,900 metric tons compared to the previous month’s average. This remarkable increase in supply can be attributed to a significant uptick in offers from Jey Oil, Bandar Abbas, Arak Pasargad Oil, and Pars Behin Qeshm Oil. The substantial supply was met with robust demand, as 152,780 metric tons were registered, surpassing the available supplies. Taking into account the prevailing free-market exchange rate between USD and IRR, the negotiated equiva- lent rates for Isfahan Jey Oil Bulk Bitumen ranged between $307 and $317. The prices for Bandar Ab- bas Pasargad Oil Bulk and Drum Bitumen were re- corded at $340 and $392, respectively. Additionally, Arak and Tabriz Pasargad Oil Bitumen were priced at $311 and $339, respectively. Pars Behin Qeshm Oil’s bitumen was quoted at $321 per metric ton.
The Chairman of the Parliament’s Construction Commission and the Chairman of the Expediency Council convened a meeting to discuss the incor- poration of parliamentary representatives’ views into the proposed bitumen hedging law. During this meeting, they aimed to highlight the positive impacts of the bitumen hedging proposal and clar- ify any uncertainties or questions surrounding it.
The executive head of the Tehran City Engineer- ing and Construction Organization has announced the distribution of nearly 900,000 tons of asphalt on both major and minor roads in the capital city. This significant allocation addresses the city’s on- going need for asphalt, which exceeds 1.5 mil- lion tons annually. Notably, previous years saw asphalt production ranging between 300,000 to 500,000 tons, underscoring the substantial ef- forts to meet Tehran’s infrastructure demands.
The Iranian Customs Administration has issued a circular (notification number 84/1402/853451, dat- ed September 17) that enforces a ban on the trans- portation and export of petroleum products utiliz- ing flexi-tanks. This prohibition came into effect on May 30, 2023. As a result, the use of flexi-tanks for the conveyance and export of petroleum prod- ucts is no longer authorized, and export declara- tions will not be accepted starting from this date